diff --git a/.changeset/sour-rivers-fry.md b/.changeset/sour-rivers-fry.md
new file mode 100644
index 0000000000..1b74850614
--- /dev/null
+++ b/.changeset/sour-rivers-fry.md
@@ -0,0 +1,9 @@
+---
+'@backstage/create-app': patch
+---
+
+Updated `packages/app` as well as the root `package.json` type resolutions to use React v18.
+
+The `@testing-library/*` dependencies have also been updated to the ones compatible with React v18, and the test at `packages/app/src/App.test.tsx` had been updated to use more modern patterns that work better with these new versions.
+
+For information on how to migrate existing apps to React v18, see the [migration guide](https://backstage.io/docs/tutorials/react18-migration)
diff --git a/packages/app/src/App.test.tsx b/packages/app/src/App.test.tsx
index 8c7cefeb2c..919a60e53d 100644
--- a/packages/app/src/App.test.tsx
+++ b/packages/app/src/App.test.tsx
@@ -15,7 +15,7 @@
  */
 
 import React from 'react';
-import { renderWithEffects } from '@backstage/test-utils';
+import { render, waitFor } from '@testing-library/react';
 import App from './App';
 
 describe('App', () => {
@@ -42,7 +42,10 @@ describe('App', () => {
       ] as any,
     };
 
-    const rendered = await renderWithEffects(<App />);
-    expect(rendered.baseElement).toBeInTheDocument();
+    const rendered = render(<App />);
+
+    await waitFor(() => {
+      expect(rendered.baseElement).toBeInTheDocument();
+    });
   });
 });
diff --git a/packages/create-app/templates/default-app/package.json.hbs b/packages/create-app/templates/default-app/package.json.hbs
index b74957dd56..40cc8282d9 100644
--- a/packages/create-app/templates/default-app/package.json.hbs
+++ b/packages/create-app/templates/default-app/package.json.hbs
@@ -42,8 +42,8 @@
     "typescript": "~5.2.0"
   },
   "resolutions": {
-    "@types/react": "^17",
-    "@types/react-dom": "^17"
+    "@types/react": "^18",
+    "@types/react-dom": "^18"
   },
   "prettier": "@spotify/prettier-config",
   "lint-staged": {
diff --git a/packages/create-app/templates/default-app/packages/app/package.json.hbs b/packages/create-app/templates/default-app/packages/app/package.json.hbs
index 598f049a4c..b403295b09 100644
--- a/packages/create-app/templates/default-app/packages/app/package.json.hbs
+++ b/packages/create-app/templates/default-app/packages/app/package.json.hbs
@@ -42,8 +42,8 @@
     "@material-ui/core": "^4.12.2",
     "@material-ui/icons": "^4.9.1",
     "history": "^5.0.0",
-    "react": "^17.0.2",
-    "react-dom": "^17.0.2",
+    "react": "^18.0.2",
+    "react-dom": "^18.0.2",
     "react-router": "^6.3.0",
     "react-router-dom": "^6.3.0",
     "react-use": "^17.2.4"
@@ -51,10 +51,10 @@
   "devDependencies": {
     "@backstage/test-utils": "^{{version '@backstage/test-utils'}}",
     "@playwright/test": "^1.32.3",
-    "@testing-library/jest-dom": "^5.10.1",
-    "@testing-library/react": "^12.1.3",
+    "@testing-library/jest-dom": "^6.0.0",
+    "@testing-library/react": "^14.0.0",
     "@testing-library/user-event": "^14.0.0",
-    "@testing-library/dom": "^8.0.0",
+    "@testing-library/dom": "^9.0.0",
     "@types/react-dom": "*",
     "cross-env": "^7.0.0"
   },
diff --git a/packages/create-app/templates/default-app/packages/app/src/App.test.tsx b/packages/create-app/templates/default-app/packages/app/src/App.test.tsx
index b94cac73b3..ec8ba1d714 100644
--- a/packages/create-app/templates/default-app/packages/app/src/App.test.tsx
+++ b/packages/create-app/templates/default-app/packages/app/src/App.test.tsx
@@ -1,5 +1,5 @@
 import React from 'react';
-import { renderWithEffects } from '@backstage/test-utils';
+import { render, waitFor } from '@testing-library/react';
 import App from './App';
 
 describe('App', () => {
@@ -20,7 +20,10 @@ describe('App', () => {
       ] as any,
     };
 
-    const rendered = await renderWithEffects(<App />);
-    expect(rendered.baseElement).toBeInTheDocument();
+    const rendered = render(<App />);
+
+    await waitFor(() => {
+      expect(rendered.baseElement).toBeInTheDocument();
+    });
   });
 });
diff --git a/packages/create-app/templates/default-app/packages/app/src/index.tsx b/packages/create-app/templates/default-app/packages/app/src/index.tsx
index b16aaf7cd2..d875c774c8 100644
--- a/packages/create-app/templates/default-app/packages/app/src/index.tsx
+++ b/packages/create-app/templates/default-app/packages/app/src/index.tsx
@@ -1,6 +1,6 @@
 import '@backstage/cli/asset-types';
 import React from 'react';
-import ReactDOM from 'react-dom';
+import ReactDOM from 'react-dom/client';
 import App from './App';
 
-ReactDOM.render(<App />, document.getElementById('root'));
+ReactDOM.createRoot(document.getElementById('root')!).render(<App />);